Book No. – 3 (Economics)

Book Name – Principles of Microeconomics (HL Ahuja)

What’s Inside the Chapter? (After Subscription)

1. THE CONCEPTS OF COST

1.1. Accounting Costs and Economic. Costs

1.2. Opportunity Cost

1.3. Short Run and Long Run Defined

1.4. Short Run Costs: Total Fixed and Variable Costs

2. THE SHORT-RUN AVERAGE COST CURVES

3. MARGINAL COST (MC)

4. THE RELATION BETWEEN THE AVERAGE AND MARGINAL COST CURVES

5. DERIVATION OF LONG-RUN AVERAGE COST CURVE

6. WHY LONG-RUN AVERAGE COST CURVE IS OF U-SHAPE?

6.1. Why does LAC fall in the beginning. Economies of Scale

6.2. Economies of Scope

6.3. Why does LAC Rise Eventually? Diseconomies of Scale

6.4. Long-Run Average Cost Curve in Case of Constant Returns to Scale

6.5. Saucer-Shaped Long-run Average Cost Curve

7. DERIVATION OF LONG-RUN MARGINAL COST CURVE

8. EXTERNAL ECONOMIES AND DISECONOMIES AND COST CURVES

8.1. External Diseconomies

9. LEARNING CURVE

10. TECHNOLOGICAL CHANGE AND LONG-RUN COSTS CURVES

10.1. Endogenous Technological Change